Business, Innovation and Skills CommitteeWritten evidence submitted by UK Government

I wanted to write to you to advise you of my Department’s position in relation to the inquiry you are holding on the Scottish independence referendum.

As you will be aware, the UK Government is publishing several papers as part of the Scotland Analysis Programme, which aims to inform voters in the 2014 referendum of the shared benefits Scotland and the rest of the UK enjoy as part of the Union, and some of the possible implications of creation of an independent Scottish state which chooses to leave the UK.

As part of this programme, my Department, working with the Department for Transport and the Department for Culture Media and Sport, has been looking at Scotland’s business and microeconomic framework as part of the UK. We will shortly be publishing a Command Paper which I believe will fully address the issues raised in your inquiry.

This Paper builds on the arguments contained in the previous publications, notably the February legal paper, and specifically will cover the UK’s large, unified domestic market; and the benefits access to this brings to Scottish businesses. It will look at how the performance of this market is driven by strong, shared administrative, regulatory and tax regimes, a unified labour market, and integrated infrastructure (including telecommunications, transport and postal services); and, will consider what some of the potential implications of separation from the UK could mean for Scottish business and consumers. The paper also covers innovation and technology with a business focus. However, the Committee should note that a separate paper on higher education, research and innovation, building on this paper, will be follow later in the year.

We are looking forward to working with you on this important inquiry, providing oral evidence and reading your final report.

The Rt Hon Vince Cable MP
Secretary of State for Business, Innovation and Skills

10 June 2013